The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $146,035. The bank statement indicated a balance of $181,965 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

A. Checks outstanding totaled $16,445.

B. A deposit of $9,900, representing receipts of June 30, had been made too late to appear on the bank statement.

C. The bank collected $31,800 on a $30,000 note, including interest of $1,800.

D. A check for $2,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $200. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.

E. A check drawn for $170 had been erroneously charged by the bank as $710.

F. Bank service charges for June amounted to $75.

Instructions

1. Prepare a bank reconciliation.

2. Journalize the necessary entries.

3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?